2017.09.2602:07:00UTC+00Fed Officials Debate Over Outlook for U.S. Inflation

The contradiction among Federal Reserve officials' outlook for the U.S. inflation surfaced into the public view just days after the FOMC held the policy meeting in Washington.

New York Federal Reserve Bank President william Dudley and Chicago Fed President Charles Evans both believe that the U.S. economy's foundations are solid. Both Fed officials also said they support a gradualist approach to the upcoming rate hikes.

Dudley's upbeat outlook reaffirmed Fed Chair Janet Yellen's confident tone during the end of the previous week's meeting that inflation is poised to return to the Fed's two percent target.

However, Evans was less confident in the economy's fundamentals, particularly in terms of inflationary pressure. During his speech in Michigan, he said is seen to ultimately boil down to the inflation situation and it may take a longer-than-expected period for it to return to expected levels. Evans added that while he is open minded regarding the next meetings he said that he will be on the lookout for evidence that inflation will be rising with momentum.

On the other hand, Dudley pointed out the weak dollar and solid overseas growth among the reasons he anticipates slightly above-average U.S. economic expansion and an increase in wages.